technical report on the nechalacho deposit, thor lake project ...

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ASSAY AND METALLURGICAL LAB The mine, when operating at 1,000 tpd is expected to generate about 20 samples per shift for analysis, or 40 samples per day, with four from the each working face. In addition, there may be a further 10 or 20 samples of various kinds such as muck samples, low grade stockpile samples, etc. These rock samples will be prepared in an area shared with the metallurgical laboratory and described below. The flotation plant will produce composite solids samples for each shift from feed, magnetic tailings, slimes tailings, four flotation products, and gravity tailings. Additionally, each product container will be sampled meaning about eight product samples per day in the initial years. In total there will initially be 24 solid samples per day rising to 32 samples per day. In addition to the analytical work on the solids, eight samples will be processed for screen analyses on a daily basis in the metallurgical laboratory. All solution samples will be sent to the ALS Laboratory in Yellowknife, or a similar organization, for analysis. Slurry samples will be filtered in the mill and wet filter cakes, and solution where appropriate, delivered to the sample preparation area at the end of each shift. Mine and mill samples will be initially dried in a large oven. High grade samples, such as concentrate will be processed in a separate drying oven. Coarse samples will then be crushed to -10 mesh and finally pulverized to 100% passing 100 mesh. High grade samples will be batch processed through the same equipment following a thorough cleaning with sand. A 10 g sample of pulverized material will be split for assaying. Solid samples will be analysed using an INNOV-X X-5000 mobile XRF unit. It is estimated that 100 samples can be processed in a 10 hr shift. Two X-5000 machines will be required in order to maintain sufficient productivity and for backup. QA/QC standards will be developed for the laboratory including protocols for duplicates and for external checks. The sample preparation and assay laboratory will require the services of a Chief Assayer, two sample preparation technicians and an assayer for a total of four. Two such crews would be needed, one on site and one on a rest period. A metallurgical laboratory at Thor Lake will be used to prepare and test samples as part of monitoring and improving the performance of the flotation mill. Technical Report 43-101 – March 13, 2011 Page 18-41 Prepared by Avalon Rare Metals Inc.
The Pine Point hydrometallurgical facility will similarly be provided with a comprehensive analytical and hydrometallurgical facility to allow the rapid assays needed for process control and testwork needed to ensure optimal operation of the plant. TAILINGS MANAGEMENT FACILITIES THOR LAKE TAILINGS MANAGEMENT FACILITY General The tailings management facility design was prepared by Knight Piésold. The design basis and criteria for the TMF are based on Canadian standards for the design of dams. In particular, all aspects of the design of the TMF have been completed in compliance with the following documents: • Canadian Dam Association (CDA) Dam Safety Guidelines (CDA 2007) • The Mining Association of Canada (MAC) Guide to the Management of Tailings Facilities (MAC 1998) The principle objective of the TMF design is to ensure protection of the environment during operations and in the long-term (after closure) and achieve effective reclamation at mine closure. The pre-feasibility design of the TMF has taken into account the following requirements: • Permanent, secure and total confinement of all tailings solids within an engineered facility • Control, collection and removal of free draining liquids from the tailings during operations, for recycling as process water to the maximum practical extent • The inclusion of monitoring features for all aspects of the facility to ensure performance goals are achieved and design criteria and assumptions are met The TMF design includes a Phase 1 and Phase 2 configuration that is raised and expanded in an ongoing manner throughout the mine life. This offers a number of advantages as follows: • The ability to reduce capital costs and defer some capital expenditures until the mine is operating. • The ability to refine design and construction methodologies as experience is gained with local conditions and constraints. • The ability to adjust at a future date to remain current with “state-of-the-art” engineering and environmental practices, etc. Technical Report 43-101 – March 13, 2011 Page 18-42 Prepared by Avalon Rare Metals Inc.
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TECHNICAL REPORT ON THE NECHALACHO
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TABLE OF CONTENTS 1. SUMMARY ......
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QUALITY ASSURANCE / QUALITY CONTROL
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Warehouse..........................
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LIST OF TABLES Table 1-1 Summary of
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Table 18-9 Mine Ventilation Quantit
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Table 18-54 Table 18-55 Pine Point
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LIST OF APPENDICES APPENDIX A Block
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Table 1-1 Summary of Mineral Resour
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Royalties. The net revenue generate
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• The products will be shipped in
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• Income taxes and NWT mining roy
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2. INTRODUCTION This report
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Figure 2-2 Project Sites, Thor Lake
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Table 2-1 Rare Earth Element Data A
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LIST OF ABBREVIATIONS Units of meas
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4. PROPERTY DESCRIPTION AND LOCATIO
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The mining leases have a 21-year li
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5. ACCESSIBILITY, CLIMATE, LOCAL RE
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Fort Resolution is located on the s
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producing a tantalum concentrate, b
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Figure 7-2 Detailed Deposit Geology
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The nepheline-sodalite syenite host
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LATE TECTONIC FAULTS Faults are pre
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8. DEPOSIT TYPES The mineral deposi
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The Ore (Nechalacho) Nepheline Soda
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from section to section - this may
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Table 9-1 Average Percent of Ore Mi
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The Nechalacho deposit alteration s
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11. DRILLING Since 1977, diamond dr
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Foraco drill rig was added in Febru
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CORE LOGGING AND CORE RECOVERY The
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A high R 2 (and all regressions had
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12. SAMPLING METHOD AND APPROACH A
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such as Illimausaq in Greenland, a
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13. SAMPLE PREPARATION, ANALYSES AN
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limited set of elements; however, s
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CONCLUSIONS Avalon’s conclusions
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Tb and Dy) were routinely monitored
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As part of the QA/QC program, Avalo
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Table 14-4: Comparison of Niobium,
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shows more deviation, with ALS MS81
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16. MINERAL PROCESSING AND METALLUR
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In a typical test, for example CCr-
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17. MINERAL RESOURCE AND MINERAL RE
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9. TREO equivalent is estimated by
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Table 17-4 Sample Information Avalo
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Figure 17-1 Distribution of REO Com
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Assay Statistics for Upper Zone* *
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CUT-OFF GRADE A previous public res
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underneath for SG measurement purpo
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Figure 17-4 Density Measurements AL
Page 105 and 106: was equal to 60 m by 60 m by 30 m a
Page 107 and 108: Table 17-12 Detailed Resource Break
Page 109 and 110: Table 17-13 Indicated Mineral Resou
Page 111 and 112: Figure 17-7 Outline of Area of Indi
Page 113 and 114: The recoveries estimated for the fl
Page 115 and 116: grades were based upon the grades w
Page 117 and 118: Figure 18-1 Thor Lake Site Layout T
Page 119 and 120: Scott Wilson RPA recommends the use
Page 121 and 122: During discussions with the mine de
Page 123 and 124: Figure 18-4 Mine Layout Some of the
Page 125 and 126: Figure 18-5 Mine Development Schema
Page 127 and 128: Table 18-2 Development Tonnage Brea
Page 129 and 130: Until the crusher is in place and t
Page 131 and 132: Lateral Development The access decl
Page 133 and 134: Equipment will be selected based up
Page 135 and 136: Table 18-6 Estimated Electrical Loa
Page 137 and 138: VENTILATION The mine ventilation is
Page 139 and 140: for closing unused areas and for ch
Page 141 and 142: Mine Fan Horse Power Using the same
Page 143 and 144: Paste Fill System A paste fill syst
Page 145 and 146: Communications Mine communications
Page 147 and 148: completion of the 30 m to 50 m long
Page 149 and 150: HEALTH AND SAFETY All crew will be
Page 151 and 152: The crushing plant is designed for
Page 153 and 154: Table 18-12 (Cont’d) Principal Pr
Page 155: Figure 18-9 Hydrometallurgical Plan
Page 159 and 160: Decant pipeworks have been included
Page 161 and 162: • Development of pre-feasibility
Page 163 and 164: Design Basis The pre-feasibility le
Page 165 and 166: non-woven geotextile) to prevent da
Page 167 and 168: divert surface drainage away from r
Page 169 and 170: A high pressure (200 psi) compresse
Page 171 and 172: Fuel deliveries are assumed to be s
Page 173 and 174: Mill Supplies The key mill supplies
Page 175 and 176: Table 18-15 Surface Equipment Fleet
Page 177 and 178: Figure 18-10 Thor Lake Temporary Ba
Page 179 and 180: • Together with the unloading log
Page 181 and 182: it will be necessary to upgrade the
Page 183 and 184: Table 18-16 Hydrometallurgical Plan
Page 185 and 186: Table 18-17 Surface Mobile Equipmen
Page 187 and 188: Rare Earth FOB China* FOB China** P
Page 189 and 190: • loparite and eudialyte in alkal
Page 191 and 192: Table 18-18 Rare Earth supply - 200
Page 193 and 194: Table 18-20 Rare Earth Demand by Ap
Page 195 and 196: Table 18-22 Proposed New REO Projec
Page 197 and 198: in China. On this basis, Avalon is
Page 199 and 200: Determine Prices for Avalon’s Pro
Page 201 and 202: The balance of niobium supply is co
Page 203 and 204: epresenting about 18% of total zirc
Page 205 and 206: Table 18-25 Historic Chinese Export
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Figure 18-16 Tantalum Markets - 200
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the price for tantalum chemicals in
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Surface Hydrology The Thor Lake dra
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seven) have occurred more frequentl
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elative to uranium, the overall eff
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interviews conducted for the nearby
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Wildlife Early science-based wildli
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Other environmental permits/approva
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TAXES The NWT diesel tax has been i
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Table 18-31 Mine Capital Cost Estim
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Table 18-33 Surface Infrastructure
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Table 18-36 Indirect Cost Estimate
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Table 18-37 Contingency Allowance A
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Operating Cost Exclusions The opera
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Table 18-40 Underground Mine Cost S
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Table 18-41 Mine Cost Details Avalo
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Thor Lake Surface The Thor Lake sur
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Table 18-45 Sales and Marketing Cos
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Table 18-47 Rail Car Load Limits Av
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there will be no overhauls in the i
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Other supplies and freight will be
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Table 18-55 Hydrometallurgical Plan
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Table 18-56 Cash Flow Summary Techn
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The sensitivity of the base case 8%
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19. INTERPRETATION AND CONCLUSIONS
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• The Mineral Reserves, which hav
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20. RECOMMENDATIONS The authors of
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21. REFERENCES BCC Research (2009):
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MDN Inc (2010): News Release Melvil
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Wardrop Engineering Inc. (2009): Th
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23. CERTIFICATES OF QUALIFIED PERSO
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CERTIFICATE OF QUALIFIED PERSON I,
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CERTIFICATE OF QUALIFIED PERSON I,
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Section 416000 Section 416100 Secti
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Technical Report 43-101 - March 13,
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